Plaintiff U.S. Equal Employment Opportunity Commission ("Commission" or "EEOC") brought this lawsuit under Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991, to correct alleged unlawful employment practices on the basis of sex harassment and retaliation and to make whole Ms. Valerie Soares, Ms. Mariel Somera, and other similarly situated female employees aggrieved by the alleged unlawful practices. Plaintiff EEOC alleged that defendant California Psychiatric Transitions, Inc. ("CPT"or "the Company"), unlawfully subjected Ms. Soares and Ms. Somera and others to a sexually hostile work environment. Defendant denied all the allegations.

In the interest of resolving this matter and as a result of having engaged in comprehensive settlement negotiations, the Commission and Defendant (hereinafter referred to as "the Parties") have agreed that the above-captioned lawsuit (the "Lawsuit") should be finally resolved by entry of this Consent Decree. This Consent Decree shall not constitute an adjudication and/or a finding on the merits of the Lawsuit.

This Consent Decree resolves all claims arising out of EEOC Charge Nos. 370-2004-01635 and 370-2004-01555 and the complaint filed in the Lawsuit, and constitutes a complete resolution of all claims of sex discrimination, sexual harassment, and retaliation under Title VII that were made or could have been made by the Commission in this Lawsuit. This consent decree also resolves all claims for attorneys fees and costs that were made or could have been made by either of the Parties in this Lawsuit. This Consent Decree does not, however, resolve any future charges or charges that may be pending with the EEOC other than the charges and complaints specifically referenced in this paragraph.

This Consent Decree comprises the full and exclusive agreement of the Parties with respect to the matters discussed herein. No waiver, modification or amendment of any provision of this Consent Decree shall be effective unless made and approved in writing by all the Parties to this Decree, and any substantive change, modification or amendment of any provision of this Consent Decree shall also require approval by the Court.

The Court has reviewed this Consent Decree in light of the pleadings, the record herein, and now approves this Consent Decree.

THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED:

GENERAL PROVISIONS

1. This Court has jurisdiction over the subject matter and the Parties to this Lawsuit. This Court will retain jurisdiction over this Consent Decree for all purposes until the expiration of Defendants' obligations as set forth herein.

2. This Consent Decree is final and binding upon the Parties, their successors and assigns.

3. Each Party shall be responsible for its own costs and attorneys' fees.

GENERAL INJUNCTIVE RELIEF

4. Sexual Harassment: Consistent with Section 703 of Title VII, 42 U.S.C. §2000e-2, the Company, and its officers, agents, managers (including supervisory employees), successors and assigns, shall not: (a) discriminate against persons on the basis of sex in the terms and conditions of employment; (b) engage in or being a party to any action, policy or practice that is intended to, or is known to them, to have the effect of harassing or intimidating any employee on the basis of sex; or (c) create, facilitate or permit, to the extent known to them, the existence of a work environment hostile to female employees.

5. Retaliation: The Company its officers, agents, managers (including supervisory employees), successors and assigns, shall not engage in, implement or permit any action, policy or practice with the purpose of retaliating against any current or former employee of the Company because he or she has in the past, or during the term of this Consent Decree (a) opposed any practice of harassment or other discriminatory acts on the basis of sex made unlawful under Title VII; (b) filed a Charge of Discrimination alleging any such practice; (c) testified or participated in any manner in any investigation into claims of harassment or other discriminatory acts (including, without limitation, any internal investigation undertaken by the Company), proceeding or hearing in connection with this Lawsuit; (d) was identified as a possible witness in this Lawsuit; (e) asserted any rights under this Consent Decree; or (f) sought and/or received any monetary or non-monetary relief in accordance with this Consent Decree.

MONETARY RELIEF

6. The Company agrees to pay the total, aggregate sum of $145,000.00 (One Hundred FortyFive Thousand Dollars and No Cents) (the "Settlement Amount") as damages for emotional distress, to be allocated in amounts to be determined in the sole discretion of the EEOC, to Valerie Soares, Mariel Somera and other similarly situated women on whose behalf the EEOC prosecuted that abovecaptioned action (hereinafter "Payee"). All payments of the Settlement Amount allocations shall be characterized as non wage compensatory damages and will be reported on IRS form 1099. No FICA/FUTA or other withholdings shall be made to the Settlement Amount or the allocations ...

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